UK domestic energy contracts, the 28 day rule, and experience in Sweden
Littlechild, Stephen C.
Cambridge Working Papers in Economics
Faculty of Economics
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Littlechild, S. C. (2004). UK domestic energy contracts, the 28 day rule, and experience in Sweden. https://doi.org/10.17863/CAM.5503
In the UK, domestic customers must be able to terminate energy contracts at 28 days� notice. This has been seen as a transitional protection for customers and for competition. This paper reviews the arguments for and against the 28 day rule, and examines the extent to which UK suppliers have offered fixed-price fixed-term contracts. It also looks at experience in Sweden, where there is no such restriction and where there is greater use of fixed-price fixed-term contracts. The paper concludes that there is no longer a need for the 28 day rule to protect customers, and that it is more likely to restrict than to protect competition.
Classification-JEL: L94, L51, competition, electricity, regulation
This record's DOI: https://doi.org/10.17863/CAM.5503
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